WHERE DO I SIGN? Corbyn slammed during budget over 'plan for interest free credit cards'

WHERE DO I SIGN? Corbyn slammed during budget over 'plan for interest free credit cards'

LABOUR leader Jeremy Corbyn is being mocked on social media after appearing to suggest during the budget debate there should be a “credit card cap” to prevent people paying back more than they borrow, which would mean INTEREST-FREE lending.

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Paul Scully, Tory MP for Sutton, Cheam and Worcester Park, tweeted: “‘No one should pay back more than they borrowed'.

“Jeremy Corbyn seems to be proposing making credit card payments interest free in his budget response.”

Another poster with the user name Dave… Just Dave added: “Why would #creditcard companies lend at 0%? #Corbyn just asked for credit card companies to be capped so nobody has to pay back more than they borrowed.”

Another called Muppetsdad said: “Corbyn just said nobody with credit card debt should have to repay more than they borrowed.

Britain's Chancellor of the Exchequer Philip Hammond has delivered his budget for 2017

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However, it would appear Twitter users laid into Mr Corbyn for badly explaining a previously planned Labour policy to prevent interest payments topping the original loan, meaning it would not be interest free.

In September, shadow chancellor John McDonnell unveiled a credit card cap at the Labour Party annual conference.

Mr McDonnell said at the time that the cap would mean that no one’s interest and fees applied by the lender could rise above the amount that was originally borrowed.

This would mean that the lending was not interest free, but would prevent debt spiralling by more than double what was borrowed.

He said the Financial Conduct Authority would introduce a “total cost cap to ensure nobody pays back in fees or interest payments more than the total amount of their original borrowing.”

Mr McDonnell said official statistics showed household debt reached staggering record levels of more than £1.8tn last year, and credit card holders owed around £14bn between them.